Course Description

The course provides an introduction to monetary theory, to the effects of monetary variables on the macroeconomic system, the role of the Central Bank and the conduct of monetary policy. Subjects covered include: The nature and function of money. Classical monetary theory, neutrality and inflation. Interest-rate feedback rules. Theories of the demand for money. The banking system, financial intermediation and the determinants of the money supply. The transmission mechanism of monetary policy, including theories of nominal rigidities and the Phillips curve. The term structure of interest rates. The theory and practice of monetary policy and the design of optimal policies. Monetary policy strategies, including inflation targeting. Policymaking in an uncertain environment. The interaction between monetary and fiscal policy and the arguments for Central Bank independence.

 Course Content

• Introduction and Overview of the Course
  
• Theories of Monetary Policy
  
• Monetary Policy in Developing Countries
  
• Financial Institutions in Developing Countries
  
• Finance, Growth and Development
  
• Financial Liberalization in Developing Countries
  
• The Financial System and Monetary Policy in Ghana

Compulsory Reading Materials

•  Baldwin, R. and C. Wyplosz (2004) The Economics of European Integration, McGraw-Hill

Optional Reading Materials

•  Obstfeld, M. and K. Rogoff (1996) Foundations of International Macroeconomics, MIT press.
  
• Mishkin, Frederic S. (2003) The Economics of Money, Banking and Finance, Sixth  (or 7 th) Edition, New York: Addison­Wesley 
  
• Fry, M. (1995), Money, Interest, and Banking in Economic Development, 2nd ed., London: The Johns Hopkins University Press
• Central Bank of Ghana, Monetary Policy Report

Course Description

Public economics provides us with a toolkit for analyzing and evaluating a host of aspects of the issue at stake. First, why might such a policy be desirable? Market failure, externality and public goods analysis here becomes helpful. So too does cost-benefit analysis. What are the likely effects of such a policy? Public economics provides us with tax incidence theory, helping us to sort out who will bear the brunt of the tax burden. Now, why really might we implement such a policy? For that, we turn to the public choice aspects of public economics: which interest groups come into play, how the costs and benefits of the policy are distributed, and how the institutional structures of an MMP parliamentary system affect outcomes. This course will examine these three facets of public economics in taxation, expenditure and other public policies. Efficiency-based methods of analysis will also be contrasted with alternative approaches.

Learning Outcomes

Students will:

• Learn core principles of public finance and public choice.
  
• Be able to analyze the merits of economic policies
  
• Understand the political processes generating policy outcomes.

Course Content

• Intro to public finance and public choice
  
• Emergence of Government
  
• Collective choice mechanisms
  
• Legislative
  
• Tax Theory
  
• Democracies and interest groups
  
• Rent Seeking
  
• Bureaucracy and Regulation
  
• Size and Scope of government

Compulsory Reading Materials

• Cullis, J. and P. Jones. 1998. Public Finance and Public Choice Second Edition. Oxford University Press. (Henceforth referred to as Cullis and Jones).
  
• Mueller, D. 2003. Public Choice III. Cambridge University Press (Henceforth referred to as Mueller).
  

 Optional Reading Materials

• Myles, G. 1995. Public Economics. Cambridge University Press (Henceforth referred to as Myles).
  
• Winer, S. and H. Shibata. 2002. Political Economy and Public Finance: The Role of Political Economy in the Theory and Practice of Public Economics. Edward Elgar. (Henceforth referred to as Winer and Shibata)